A Euro recovery against the US Dollar may be brewing against the US Dollar after prices formed a bullish Piercing Line candlestick pattern. Positive RSI divergence bolsters the case for an upside scenario. Near-term resistance is at 1.0623, the 61.8% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 1.0796. Alternatively, a drop below the 76.4% Fib at 1.0408 opens the door for a challenge of the 100% expansion at 1.0060.

Our long-term outlook envisions Euro weakness. With that in mind, we will treat any on-coming upswing as corrective and look to enter short once signs of a renewed turn lower emerge. In the meantime, we will remain on the sidelines.